2. Objective
Projection of Balance Sheet.
Projection of Profit and loss account.
To Project Cash flow, Fund flow statement.
Assumptions
Evaluation of Mock valuation
Disclaimer: This report was made only for internal assignment purpose for MBA’S in VIT
Chennai. Some values are modified. I will not be liable to company if any loss occur due to
this report.
4. OPERATIONAL COSTS
Increase in operating expense means that company is spending more on wages, establishing factory at
site. Reason for decrease in Gross profit from operation Is that company focus on execution , slow down in
execution of project due to downfall of market and thus their market share downfall
• ALLTHEVALUESARE IN – INR
• PROJECTION FOR FIVE YEARS
5. BALANCE SHEET
Foreign currency 2014 2015 2016 2017 2018 2019
TOTAL ASSETS 10,853,606,557.38 16,984,398,828.84 22,968,407,371.32 28,795,162,414.80 34,448,914,237.15 39,912,362,553.22
Total current assets 3,781,355,737.70 9,912,148,009.16 15,896,156,551.65 21,722,911,595.13 27,376,663,417.48 32,840,111,733.55
Total fixed assets, net of
depreciation 7,072,250,819.67 7,072,250,819.67 7,072,250,819.67 7,072,250,819.67 7,072,250,819.67 7,072,250,819.67
TOTAL LIABILITIES 10,853,606,557.38 16,984,398,828.84 22,968,407,371.32 28,795,162,414.80 34,448,914,237.15 39,912,362,553.22
Total current liabilities 0 3,994,668.73 4,369,837.27 4,806,857.95 5,287,543.75 5,816,298.12
Total long-term debt 1,639,344.26 1,625,683.06 1,461,748.63 1,297,814.21 1,133,879.78 969,945.36
Total equity capital 10,851,967,213.11 10,851,967,213.11 10,851,967,213.11 10,851,967,213.11 10,851,967,213.11 10,851,967,213.11
Reserves, retained profit
brought forward 0 0 6,126,811,263.93 12,110,608,572.30 17,937,090,529.52 23,590,525,600.51
Retained profit 0 6,126,811,263.93 5,983,797,308.36 5,826,481,957.23 5,653,435,070.99 5,463,083,496.12
Net worth 10,851,967,213.11 16,978,778,477.05 22,962,575,785.41 28,789,057,742.64 34,442,492,813.62 39,905,576,309.74
Equity to total liabilities (%) 99.984896 63.893738 47.247365 37.686772 31.501623 27.189488
Net worth to total
liabilities (%) 99.984896 99.966909 99.97461 99.9788 99.98136 99.982997
Long-term debt to net
worth 0.000151 0.000096 0.000064 0.000045 0.000033 0.000024
Current assets to current
liabilities 0 2,481.34 3,637.70 4,519.15 5,177.58 5,646.22
• ALLTHEVALUESARE IN – INR
• PROJECTION FOR FIVE YEARS
6. BRIEF CASHFLOW AND FUNDFLOW STATEMENTS
Foreign currency Construction 2014 Production 2015 Production 2016 Production 2017 Production 2018 Production 2019 Scrap
TOTAL CASH INFLOW 10,853,606,557.38 7,560,945,488.40 7,557,325,988.22 7,557,387,840.35 7,557,431,505.47 7,557,479,574.05 7,095,516,012.16
Inflow funds 10,853,606,557.38 3,994,668.73 375,168.55 437,020.68 480,685.80 528,754.37 0
Inflow operation 0 7,556,950,819.67 7,556,950,819.67 7,556,950,819.67 7,556,950,819.67 7,556,950,819.67 0
Other income 0 0 0 0 0 0 7,095,516,012.16
TOTAL CASH
OUTFLOW 7,072,250,819.67 1,446,065,726.50 1,574,884,419.63 1,732,380,745.21 1,905,602,426.29 2,096,146,275.48 6,786,243.48
Increase in fixed
assets 7,072,250,819.67 0 0 0 0 0 0
Increase in current
assets 0 15,912,509.56 1,566,973.90 1,747,948.35 1,922,743.18 2,115,017.50 0
Operating costs 0 1,430,139,555.74 1,573,153,511.31 1,730,468,862.44 1,903,515,748.69 2,093,867,323.56 0
Loan repayment 0 13,661.20 163,934.43 163,934.43 163,934.43 163,934.43 6,786,243.48
SURPLUS (DEFICIT) 3,781,355,737.70 6,114,879,761.90 5,982,441,568.59 5,825,007,095.13 5,651,829,079.17 5,461,333,298.57 7,088,729,768.68
CUMULATIVE CASH
BALANCE 3,781,355,737.70 9,896,235,499.60 15,878,677,068.19 21,703,684,163.32 27,355,513,242.49 32,816,846,541.06 39,905,576,309.74
Local surplus (deficit) 3,781,355,737.70 6,114,879,761.90 5,982,441,568.59 5,825,007,095.13 5,651,829,079.17 5,461,333,298.57 7,088,729,768.68
Local cumulative cash
balance 3,781,355,737.70 9,896,235,499.60 15,878,677,068.19 21,703,684,163.32 27,355,513,242.49 32,816,846,541.06 39,905,576,309.74
Net flow of funds 10,853,606,557.38 3,981,007.52 211,234.12 273,086.25 316,751.37 364,819.95 -6,786,243.48
• ALLTHEVALUESARE IN – INR
• PROJECTION FOR FIVE YEARS
7. SUMMARY SHEET
INVESTMENT
ALLOANCES
0.00 0.00 0.00
TAXABLE PROFIT 6,126,811,263.93 6,126,811,263.93 5,463,083,496.12
INCOME(CORPORA
TE)TAX
0.00 0.00 0.00
NET PROFIT 6,126,811,263.93 6,126,811,263.93 5,463,083,496.12
• ALLTHEVALUESARE IN – INR
• PROJECTION FOR FIVE YEARS
8. ASSUMPTIONS
• The overhead expenses and advertisement costs are exempted to increase IRR
• An increment projection of salary and administration expenses @of 10% per annum.
• Depreciation is not considered.
• The firm is considered to be running in profit and ongoing concerned.
9. Recommendations
• Increase its branch locations to expand and penetrate into market.
• Decrease the min. amount to maintain SB account in increase the no. of customers.
• The corporate loan is a hidden worry for share investors this has to be take care as it holds around 47 %
of it credit book which is at risk.
• The main income source of Axis bank is from its brokerage, additional fee and operational costs which is
dependent on competitors and cannot be a vital long run income for it.